Cuomo to introduce “Destination Resort Casino Act of 2013?

Gov. Andrew Cuomo is set to unveil his casino legislation today, which would allow additional video-lottery terminal facilities in western New York if the Seneca Nation of Indians fails to reach an agreement over its gambling dispute with the state.

A two-page outline of the legislation obtained by Gannett’s Albany Bureau details many of the provisions of the bill.

One of the provisions calls for Western Regional Off-Track Betting and Finger Lakes Racetrack and Casino to be allowed to add video-lottery parlors in western New York if a casino amendment is not approved by voters in November and “the Seneca Nation agreement is not in good standing,” the memo, which was distributed to Cuomo’s top aides last night, states.

The Senecas, who operate three casinos in western New York, owe the state more than $550 million because it is not paying the state revenue from its casino operations. It claims the state has violated its gaming compact by having three VLT facilites in the region—Finger Lakes, Batavia Downs and Buffalo Raceway.

To put pressure on the Senecas to reach a compromise, Cuomo’s bill is expected to allow Finger Lakes and Batavia to add more gambling halls if the Senecas don’t settle the dispute.

Cuomo is seeking legislative approval to build three upstate casinos as part of an overall plan to add as many as seven casinos in New York. The bill would not allow any casinos to located downstate for five years after the upstate casinos open, and a five-member “resort gaming facility board” would select the locations for the three casinos.

The tax rate on the facilities would be 25 percent of gross gaming revenue, and there would a minimum $50 million licensing fee for each casino.

The bill comes after Cuomo reached gaming compacts last month with the Mohawks in northern New York and the Oneidas in central New York. They will have exclusive gaming rights in their regions.

The whole agreement would need to approved by lawmakers before session ends June 20 and approved by voters in November.

As for the Senecas, if the constitutional amendment passes and no settlement is reached with the state, “the western New York region will be bid out for casinos,” the memo states.

There was no immediate comment from Cuomo’s office on whether the memo’s contents will be in the final bill.

For example, the memo also includes allowing a video-lottery terminal facility in New York City outside Manhattan, but that is not expected to be in the final bill. It is instead meant to be a warning to Aqueduct and Yonkers—who have VLTs—to not oppose the statewide plan.

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Other provisions of the bill are expected to include: Local approval would be needed for casino applicants and require local laws; the gambling age would be 21 and older and no smoking would be allowed; and revenue would be shared with the local municipalities.

Also, political contributions from casinos and casino applicants to elected officials would be prohibited.